GO Residential REIT has agreed to buy a portfolio of 27 properties valued at approximately US$2.8 billion from H&R REIT. The transaction will position GO as Canada’s second-largest publicly traded residential REIT by enterprise value once completed in the fourth quarter of 2026.

Payment for the acquisition comprises 134,208,643 newly issued trust units of GO and US$30 million in cash. GO will also assume C$300 million of H&R’s 2.633% Series S Debentures, C$250 million of 5.457% Series T Debentures, and nearly US$1.1 billion in property-level debt. Upon closing, former H&R unitholders will hold roughly 67% of GO’s operating subsidiary on a fully diluted basis, while existing GO unitholders and OpCo holders will retain 33%.

The asset transfer includes 23 Sunbelt residential properties providing 10,294 suites across markets such as Tampa, Miami, Dallas, and Austin. Additionally, GO secures a 50% stake in a Miami mixed-use asset, a 50% share in a New York City luxury high-rise, a Class A Manhattan office tower, and a commercial building in Dallas.

“We have built one of the highest-quality luxury residential portfolios in New York City, and this transaction takes that foundation and adds Sunbelt scale, balance sheet strength, and earnings growth – transforming GO into one of Canada’s largest publicly-traded residential REITs. It will be a platform with a greater opportunity set, and competing for a different category of investor,” said Joshua Gotlib, Chief Executive Officer of GO Residential REIT.

Meyer Orbach, Chairman of GO Residential REIT, added: “The Board has unanimously concluded that this transaction is in the best interests of GO. It addresses, in a single step, the issues that have limited GO’s valuation – concentration, leverage, and scale – while preserving the quality and integrity of the portfolio our team has assembled.”

The agreement expands GO’s estate to 13,300 suites across 35 properties. Management expects $15 million in annual operational synergies while reducing pro forma debt to EBITDA by more than 2x.

The deal is executed via a statutory plan of arrangement under Alberta law alongside a consortium including Blackstone, Crestpoint, and PSP. Approval requires a simple majority vote from GO unitholders alongside customary court and regulatory approvals.